Ofcom has fined Virgin Media £28 million for failing to handle contract cancellations properly

Ofcom has imposed a £28 million fine on Virgin Media after discovering that customers encounter numerous challenges when attempting to cancel their contracts and switch providers.

Virgin Media has received a £28m fine from the UK’s communications regulator following an investigation that revealed the broadband and telecoms provider consistently hindered customers in their attempts to cancel contracts or switch to competing services.

The penalty imposed by Ofcom is the largest ever issued by the regulator under its consumer protection rules. This decision comes after findings that millions of customer calls were likely mishandled between January 2022 and September 2024. The regulator indicated that the company’s practices hindered or dissuaded customers from departing, while Virgin Media also did not fully engage with the investigation.

Ofcom reported that its investigation revealed call center staff frequently used tactics that hindered or postponed customers from terminating their contracts. The evidence is unmistakable. Virgin Media complicated the process for customers wishing to cancel their contracts and subsequently did not fully engage with our investigation.

According to the regulator, agents intentionally disconnected calls with customers, transferred calls without justification, frequently placed callers on hold without cause, and pressured customers to continue their association with the company. Ofcom also discovered that Virgin Media’s commission structure effectively incentivized staff to dissuade cancellations.

“Virgin Media’s commission scheme effectively incentivized and financially compensated call center agents for acting in this manner.”

The regulator stated that its rules mandate telecom providers to implement cancellation procedures that do not dissuade customers from terminating their contracts or changing providers. It was determined that Virgin Media’s actions probably served as a deterrent in numerous customer interactions.

Natalie Black, Ofcom’s Group Director for Networks and Communications, characterized the company’s behavior as unacceptable and cautioned that providers who violate consumer rights would encounter significant repercussions. “Today, we are delivering a strong message that any provider who intentionally acts against the interests of their customers will face significant consequences.”

Ofcom reported receiving 1,881 complaints from customers who experienced challenges when trying to leave Virgin Media. Some customers chose to cancel their direct debits after being unable to terminate their contracts, resulting in missed payments that impacted their credit records.

The regulator discovered that Virgin Media implemented a two-tier customer retention system, where only second-tier agents possessed the authority to handle cancellations. Consequently, over one million customers were required to reiterate their cancellation requests to extra staff before their contracts could be officially terminated.

Virgin Media acknowledged its shortcomings and consented to resolve the investigation, leading to a 30% decrease in the financial penalty. The company expressed regret to customers who faced issues and stated that it had revamped its customer service operations. “In recent years, we have undertaken a comprehensive redesign of our customer service, effectively addressing past shortcomings through various enhancements.”

The company announced that a substantial investment has enhanced its customer service, noting that Ofcom’s most recent figures indicate it is currently the UK’s least-complained-about broadband provider. It was also noted that complaints regarding customers facing challenges in leaving the service decreased by 89% last year compared to 2023.

Ofcom recognized that Virgin Media had made enhancements to its commission structure, staff training, quality assurance, and monitoring processes. The regulator announced that it would keep a close watch on the company for the next six months to verify the effectiveness of the changes implemented.

Virgin Media is required to pay the £28m fine within two months, with the funds directed to the UK Treasury. The company faced a fine of £23.8m from Ofcom in 2025 due to shortcomings that resulted in thousands of customers being deprived of access to essential telecare alarms during the UK’s digital switchover.